usmcstinger
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- Dec 31, 2011
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- #21
Not even close to enough. Should be 39%.What effect will it have on the US Economy?
Good number. And capital gains should be taxed the same as earned income. And the cap on income subject to the Social Security tax should be eliminated. Corporations pay a much smaller share of total taxes paid. In the booming 50's the corporate tax accounted for almost half of all revenue, by the 60's it had dropped to about a third. But the US economy was blazing, double digit growth in GDP through most of that time. Today, corporate taxes don't amount to a tenth of total taxes. You can almost track GDP growth by the percentage of the total tax burden corporation pay. The higher that percentage the higher GDP growth.
- A corporate income tax rate closer to that of other nations will discourage profit shifting to lower-tax jurisdictions.
- New investment will increase the size of the capital stock, and productivity, output, wages, and employment will grow. The Tax Foundation Taxes and Growth model estimates that the total effect of the new tax law will be a 1.7 percent larger economy, leading to 1.5 percent higher wages, a 4.8 percent larger capital stock, and 339,000 additional full-time equivalent jobs in the long run.
- If lawmakers raised the corporate income tax rate from 21 percent to 25 percent, we estimate the tax increase would shrink the long-run size of the economy by 0.87 percent, or $228 billion. This would reduce the capital stock by 2.11 percent, wages by 0.74 percent, and lead to 175,700 fewer full time equivalent jobs.
- Obviously you have no understanding of Basic Economics. However, it must make sense in your delusional thought process.